Crypto Biz: Bitcoin surges on Treasury's bond buyback strategy labeled 'Not-QE'
Treasury bond buyback programs drove Bitcoin's rally in the "not-QE" phenomenon, as Metaplanet announced US expansion plans and Cypherpunk committed $33 million to Zcash mining operations.
This week, Bitcoin alongside the wider cryptocurrency market experienced what's being called "not-QE" — and the response was decidedly positive.
Bitcoin's (BTC) value surged by over 23% approaching the $79,000 mark, while Ether climbed past $2,400 following the US Treasury's announcement to expand specific long-dated bond buyback operations. This development has intensified a critical debate for cryptocurrency markets: If the federal government continues discovering alternative methods to inject liquidity without officially launching quantitative easing programs, might Bitcoin and similar risk assets emerge as the primary winners?
This emerging dynamic is already influencing strategic decisions throughout the cryptocurrency sector. Standard Chartered projects Bitcoin climbing to $100,000, Metaplanet is bringing its Bitcoin treasury approach to American markets, and Cypherpunk Technologies has committed $33 million toward Zcash mining infrastructure.
Standard Chartered analyst sees Bitcoin reaching $100,000 as Treasury buybacks expand
Geoff Kendrick, an analyst at Standard Chartered, projected that Bitcoin may hit $100,000 before the end of this year as the US Treasury amplifies long-end bond buyback operations, characterizing this development as "exactly the type of thing Bitcoin loves."
In a note distributed to clients, Kendrick indicated that BTC's critical technical threshold sits at $65,500, with a breakthrough above this level potentially confirming that the cycle bottom has been established. He referenced Wednesday's Treasury announcement outlining plans to minimally double buyback activities for 10- to 20-year and 20- to 30-year coupon bonds. Long-dated bond yields declined, and Bitcoin's value immediately jumped over 6% to approach $69,000, marking its strongest performance since early June, according to CoinMarketCap data.
The enhanced buyback program is scheduled to operate from Sept. 9 through Nov. 4. Kendrick contends that Bitcoin typically profits from governmental liquidity injection measures, and its predetermined supply cap provides protection against monetary debasement. His forecast remains contingent on BTC maintaining levels above $65,500. In the absence of such support, confirming the cycle bottom becomes impossible.
Metaplanet expands Bitcoin treasury strategy to US with Super League deal
Metaplanet has announced intentions to acquire a controlling interest in Super League Enterprise, a Nasdaq-listed entity, thereby extending its Bitcoin treasury approach into United States markets.
The Tokyo-based company will inject 2,100 BTC plus $2.5 million in cash into Super League, which will undergo a rebranding to Superplanet. The Bitcoin contribution, valued at approximately $145 million, represents less than 5% of Metaplanet's total holdings of 43,000 BTC and will be sourced from current treasury reserves rather than fresh acquisitions. Chief Executive Officer Simon Gerovich explained that this arrangement creates dual capital-raising pathways: Superplanet operating in American markets while Metaplanet functions in Japan. Super League's stock price jumped more than 50% following the announcement.
The transaction is anticipated to finalize during the fourth quarter, pending shareholder consent and standard closing requirements.
Cypherpunk launches Zcash mining fleet controlling 18% of network hashrate
Cypherpunk Technologies is venturing into Zcash (ZEC) mining operations following its acquisition of mining equipment from Winklevoss Capital through a $33.33 million equity transaction, positioning the publicly traded company to control approximately 18% of the network's total hashrate.
The mining infrastructure has commenced operations at facilities located in the United States, generating approximately 4.2 GSol/s, which constitutes roughly 18% of Zcash's present hashrate capacity. Cypherpunk additionally possesses 323,394 ZEC tokens, representing about 1.9% of tokens in circulation, with ambitions to reach 5% ownership. The company has promoted Zcash mining as delivering superior economic returns compared to Bitcoin mining operations or artificial intelligence data center infrastructure.
Nevertheless, these economic projections are substantially influenced by ZEC's market price, network hashrate levels, mining difficulty adjustments, and operational expenditures. This strategic expansion follows a significant rally that witnessed ZEC's price appreciation exceeding 1,300% across a 12-month period, although the token has subsequently experienced a price correction. The Zcash network completed its Ironwood upgrade implementation on July 28 to supersede the Orchard pool following discovery of a vulnerability that theoretically could have enabled counterfeit ZEC creation, though no actual exploitation incidents were ever identified.
CFTC seeks comment on AI compute futures as CME eyes October launch
The US Commodity Futures Trading Commission (CFTC) has initiated a public comment solicitation regarding futures contracts linked to artificial intelligence computing capacity, representing a regulatory step that may influence an emerging marketplace for trading and hedging computational power expenses.
According to a Monday report by Bloomberg, the regulatory body submitted a comment request to the White House Office of Management and Budget. Last week, CME Group revealed plans to introduce two compute futures contracts on Oct. 5, subject to regulatory clearance, with Silicon Data supplying the underlying benchmarks. Projections from TD Lombard, Goldman Sachs and Bridgewater Associates estimate that AI infrastructure investments will account for approximately 2% to 2.5% of United States GDP during the current year.
The regulatory review process could introduce complexity to the launch schedule for compute-related products planned by CME Group and Intercontinental Exchange, both of which await regulatory authorization. Following completion of the White House review phase, the CFTC is projected to initiate a public comment period, which customarily extends for 30 or 60 days, based on Bloomberg's reporting.
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